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Trading ADRs to send money to/from the US?

I saw this article in Portafolio today about Colombian stock that are listed in the NYSE. Apparently, you could buy preferential Bancolombia shares in the Colombian stock exchange in Colombian pesos and then sell them in the NYSE and receiving dollars in the US for them and vice versa.
Any one know about this or has tried it?

http://www.portafolio.com.co/opinion/blogs/home/post.php?id_blog=41739...

By viajero123 on Aug 22, 2008, 10:27 in Buy, Sell & Rent.

viajero123 (☼Travelguide writer) says on Aug 22, 2008, 10:31:

Maybe this is a good way to bringing in and taking out money for real estate investments and also to skip 4xmill on large transactions (Colombian stock exchange transacitons are exempt from 4 xmil), and then also to deal with a nice comisionista instead than with a Colombian bank?

Maybe also a risky way to invest in Colombian pesos when there are expectations of dollar devaluation?

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Tinto (Moderator) (Trustee board) says on Aug 22, 2008, 10:36:

It's a pain in the butt to set up an account with a brokerage firm in Colombia and I doubt you can buy or sell any quantity of shares in Colombia for the the equivalent of $7 USD. The idea might work, but know the transaction costs before jumping in. Also, Colombian firms have "know your customer rules" and they might frown on repeated transactions with the same stock; it may become clear to them that you're just trying to transfer money in a roundabout way.

I wanted access to health care, housing and education, but, no, I get potholes, trash and silicone tits instead. -Desi.

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pedro (☼Travelguide writer) says on Aug 22, 2008, 11:19:

G-loid, which broker are you using? Can you outline the process step by step for me? (PM if necessary)

Consulting this detailed directory of brokers in Colombia (http://www.elzipa.info), it should be easy enough to find one who doesn't require a whole lot of documentation.

"this may seem a strange post but it is not...when in colombia men need to be aware that colombia women may try to be seductive and entice a travelling gringo to have sex with them..to be forewarned is to be forearmed..." -- pow wow

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viajero123 (☼Travelguide writer) says on Aug 22, 2008, 11:40:

gloid, in a nutshell, how much of a variation of the rate of the day do you get for your dollars?

About opening a stock brokerage account, if it is of a considerable amount, I am sure most comisionistas de bolsa would be more interested in dealing with you than banks. A proof of origin of the funds is required but then things flow a lot easier with them. You dont even have to go to an office as a broker would visit you to talk to you and to do all the paperwork.

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